In large IT deals, MNC clients now monetising internal assets

economictimes.indiatimes.com:

Infosys Ltd’s recent $1.6 billion deal with Liberty Global Plc includes licensing the European telecom company’s connectivity platform Horizon to other telecom firms.

Similarly, hardware equipment maker Lexmark plans to commercialise its internet of things (IoT) platform Optra through Tata Consultancy Services Ltd (TCS), which will then offer it to manufacturing and retail clients of Tata Group companies worldwide.

Elevate Your Tech Prowess with High-Value Skill Courses

These two partnerships underscore how multinational companies are seeking to monetise platforms and solutions developed inhouse and partner IT services firms to sell these solutions to a wider audience.

Experts say such monetisation moves may not move the needle much in terms of wider revenue streams for clients such as Lexmark and Liberty Global but they signal an emerging broader trend in terms of large deal composition. Tier I IT firms have an advantage here as they can easily cross-sell such internal solutions due to their vast client base.


Indian IT firms have been winning large deals over the past few weeks as companies are focussing on large scale cost-cutting programmes and monetisation of non-core assets.

“Today, the technology is such that you can build a reusable core platform and can build services or applications around it. I predict 40-50% of revenues for IT firms will come from platform usage across clients rather than custom-built applications (from scratch) in the future,” said